Caldera

Evidence Includes E-mail and Other Documents
Exchanged Between Bill Gates and Other Top-Level Microsoft
Employees

Salt Lake City, UT -- April 28, 1999 --
Caldera® today filed publicly a
comprehensive, 188-page Statement of Facts in its antitrust
lawsuit against Microsoft. The statement will serve as a
factual foundation for subsequent filings by Caldera in U.S.
Federal Court in Utah required in response to nine motions
for partial summary judgment brought by Microsoft. In
January, Microsoft submitted the motions in an attempt to
have portions of Caldera's case thrown out. Caldera's
Statement of Facts, along with soon-to-be-filed individual
responses to Microsoft's motions, introduce evidence never
before made public that establishes factual support for
Caldera's claims. This evidence includes 449 exhibits,
expert reports, and deposition testimony of Microsoft
executives including Bill Gates, Steve Ballmer and Brad
Silverberg.

"Our filings establish Microsoft's liability in our
antitrust lawsuit," said Bryan Sparks, President and CEO of
Caldera, Inc. "For the first time since we filed our case in
July of 1996, the public will be able to see some of the
evidence that supports our contention that Microsoft
systematically and routinely engaged in predatory acts in
maintaining their operating system monopoly -- acts that
involved employees at all levels of the company."

The comprehensive Statement of Facts presents a
chronology of Caldera's evidence, much of which is presented
in the form of Microsoft e-mails, internal memos and sales
reports. Caldera believes its evidence will demonstrate a
contradiction between what Microsoft has said publicly and
done privately.

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For example, in the Aug 16, 1993 issue of PCWEEK, Bill
Gates was quoted as saying, "Is there anything Microsoft has
ever done to intentionally build in incompatibilities? The
answer is absolutely not." However, when Microsoft was
designing and coding Windows 3.1, one of its senior
engineers, Phil Barrett, said in a September 1991 e-mail,
"heh, heh, heh...my proposal is to have bambi [code name
for work on Windows 3.1] refuse to run on this alien OS
[DR DOS 6]. comments? The approach we will take is
to detect dr 6 and refuse to load."

Caldera believes its evidence establishes that:

Microsoft has used misleading product announcements known
in the industry as "vaporware" to dampen sales and diffuse
interest in DR DOS

Microsoft made false and misleading statements about DR
DOS to create FUD (Fear, Uncertainty and Doubt) in the
industry

Microsoft developed intentional incompatibilities to make
it appear to be difficult for DR DOS to work with Windows

Microsoft used "per-processor" and other exclusionary
licensing terms to block out DR DOS

Moreover, Caldera believes its evidence demonstrates that
Windows 95 is not an "integrated operating system" as
Microsoft has asserted, but rather a simple combination of
Windows and MS-DOS. Microsoft documents reveal that
Microsoft released Windows 95 as a single product to
eliminate operating system competition from Novell.

Until recently, almost all court filings containing
information coming from Microsoft documents have been held
under court seal because Microsoft has designated those
documents as confidential under a protective order. Caldera
claims that Microsoft has overused the confidentiality
designation.

During the course of Caldera vs. Microsoft, the first of
several antitrust lawsuits brought against Microsoft in the
past three years, Microsoft has attempted to discredit
Caldera's claims by making statements to which Caldera was
unable to respond because the documents were previously
sealed.

For instance, Microsoft Associate General Counsel Tom
Burt said in February 1999, "There is simply no factual
basis for Caldera's claims. Many of Caldera's allegations
merely recycle claims that the Federal Trade Commission and
Department of Justice reviewed years ago and decided were

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groundless...After nearly three more years of
investigation, Caldera still has no evidence to support its
claims." The public can now see some of the evidence Caldera
relies on to support its claims.

Burt's statement that Caldera's allegations have "no
factual basis" and were found by the government to be
"groundless" are contradicted by a statement by Attorney
General Janet Reno at the conclusion of the government's
investigation of Microsoft in July 1994. Reno said,
"Microsoft's unfair contracting practices have denied other
U.S. companies a fair chance to compete, deprived consumers
of an effective choice among competing P.C. operating
systems, and slowed innovation." In addition, Anne K.
Bingaman, Assistant Attorney General in charge of the
Antitrust Division in 1994 said, "Microsoft is an American
success story but there is no excuse for any company to try
to cement its success through unlawful means, as Microsoft
has done with its contracting practices." Even though
Microsoft agreed in 1994 to a consent decree dramatically
changing its licensing practices, Caldera alleges in its
case that Microsoft continued to engage in anticompetitive
practices to maintain its operating system monopoly.

"Microsoft attempts to downplay the use of e-mail as
evidence, even though in his recently released book, Gates
counsels that all business communication should flow through
e-mail, " said Steve Hill, lead attorney for one of
Caldera's law firms handling this case. "Caldera has
attached Microsoft's e-mail and other Microsoft documents as
exhibits to its Statement of Facts. These documents show
that what Microsoft discusses in e-mail often translates
into action."

Hearing Schedule

The Statement of Facts filed today and subsequent
rebuttals to each of Microsoft's motions for partial summary
judgment are preparatory to a series of hearings scheduled
by U.S. District Judge Dee Benson, who has been assigned as
trial judge to Caldera v. Microsoft. During these hearings,
Judge Benson will rule on Microsoft's nine separate motions
to have portions of Caldera's case thrown out. The hearings,
which begin on May 25, will take place in U.S. District
Court in Salt Lake City, where the case will eventually go
to a jury trial on January 17, 2000. A schedule of these
hearings can be accessed at
www.calderathin.com/lawsuit/index.html.

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Contact Information

Caldera, Inc. can be reached at (801) 426-5001 or via
E-mail at legal@caldera.com. A full copy of Caldera's
Statement of Facts and additional information about Caldera
vs. Microsoft can be accessed at www.calderathin.com.

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Caldera, Inc., the parent company of
Caldera Systems, Inc. and Caldera Thin Clients, Inc., was
founded by Bryan Sparks in October 1994 as a start-up
venture funded by Ray Noorda, former CEO of
Novell®, Inc. Caldera Thin Clients, Inc.
provides compact solutions designed for Internet set-top
devices and other embedded OEM solutions, including DR DOS
and DR-WebSpyder, a graphical, DOS-based Internet browser.
Caldera Systems, Inc. designs, develops and markets a line
of Linux-based business solutions, including OpenLinux,
technical training and support.